The International Finance Corporation (IFC), a member of the World Bank Group, and the Central Bank of Nigeria (CBN) have announced a strategic agreement to increase local currency financing, unlocking over $1 billion in investments across critical sectors of the Nigerian economy.
In a joint statement released on Monday, IFC and CBN outlined the partnership’s aim to provide naira-based financing to key sectors, including agriculture, infrastructure, housing, energy, small and medium enterprises (SMEs), and Nigeria’s youth and creative industries.
The agreement, signed by IFC Managing Director Makhtar Diop and CBN Governor Yemi Cardoso, is expected to improve access to long-term, affordable local currency funding, thereby mitigating currency risks and fostering private sector growth.
The joint statement read, “IFC, a member of the World Bank Group, and the Central Bank of Nigeria have signed an agreement to increase local currency financing to enable private businesses in Nigeria to grow and thrive. The partnership will allow IFC to manage currency risks and increase its investment in Nigerian naira across priority sectors of the economy.”
The IFC plans to scale up its investment in critical sectors, with a goal of providing more than $1 billion in financing over the coming years.
The statement emphasised that local currency financing is crucial for these sectors, and the partnership with CBN serves as a key tool to expand access to funding.
CBN Governor Yemi Cardoso described the agreement as a “pioneering initiative” that aligns with the Federal Government’s agenda to diversify the economy and drive sustainable growth.
Cardoso stressed that the deal reflects CBN’s commitment to innovative financing solutions in collaboration with reputable global institutions.
IFC Managing Director Makhtar Diop reiterated IFC’s commitment to driving economic growth, saying, “Expanding access to affordable local currency financing for small businesses in Nigeria is essential for IFC to address the increasing demand for diverse funding options and to better manage currency risk.”
With a portfolio of $2.13 billion, Nigeria is the second-largest beneficiary of IFC’s financing in Africa, highlighting the significance of the country’s partnership with the institution.
This collaboration between IFC and CBN is anticipated to enhance lending in the Nigerian naira, supporting economic growth and job creation across the country.
